Clarification of HRD Ministry regarding misleading reports that Budget allocation to Education is decreasing

New Delhi: This is with reference to a news item in media wherein it is mentioned that allocation to education is decreasing over time. The correct picture is as given below :

The report mentions the allocation to education under MHRD (School Education & Literacy and Higher Education Departments) only. Where as funds are allocated for Education under Budget of other Departments also. In addition, Budget for Education under States/UTs Budgets are also provisioned. The budget provided by the Centre through MHRD and other Departments/Ministries for education and by the States/UTs for education in both absolute terms and as percentage of GDP is increasing every year. Table below may be referred in this regard.

Year Expenditure on Education by education and other department (Rs. Crore) Expenditure(As % of GDP)
States/UTs Centre Total States/UTs Centre Total
2017-18(BE) 582089.45 174855.55 756945.00 3.41 1.02 4.43
2016-17(RE) 511589.00 152675.52 664264.52 3.33 0.99 4.32
2015-16(Actual) 435229.54 142562.97 577792.51 3.16 1.04 4.20
2014-15(Actual) 373457.31 133391.82 506849.13 3.00 1.07 4.07
2013-14(Actual) 318249.78 112629.03 430878.81 2.83 1.00 3.84

It may be seen from the above statement that expenditure on Education has been increasing over the years in both absolute terms as well as in percentage of GDP.

It is also mentioned that Government of India has set up Higher Education Financing Agency in 2017 to finance infrastructure development in Kendriya Vidalayas, Navodayas, AIIMS, besides Higher Education Institutions. During 2017-18, Rs 2168.26 crore worth projects were approved under HEFA, and during 2018-19 Rs 29411.99 crore worth projects have been approved under HEFA.

It is also wrong to say that centre spends 10% while States spend 90% on education. As per Analysis of Budgeted Expenditure on Education, 2017-18, the Centre spends around 23% while States/UTs spend 77% of their total revenue expenditure on Education.